Answer:
$950,000
Explanation:
As per IRS section 332, in the case when the parent company received a property when the complete liquidation of subsidiary company is done so the receipts of such property would not recorded either any loss or gain. Also the basis of the parent company assets would be carry over basis.
So here the basis would be $950,000
The same is to be considered
Answer:
The correct word for the blank space is: lower; buyers to offer higher prices.
Explanation:
In a market driven by supply and demand laws, shortages are caused because of excess in demand as a result of lower prices. Thus, that price is lower than the equilibrium price. Besides, if there is a need to push that price to its equilibrium level, sellers will have to increase the price implying buyers will have to offer higher prices.
Answer:
$960,000
Explanation:
The balance in equity investment made by Cleaverland in Omaha as at December 31, 2020 shall be determined using the following method:
Purchased price of Cleaverland as at January 1, 2019 $650,000
Net income for the year 2019 $150,000
Net income for the year 2020 $190,000
Less: Dividend paid by Omaha to Cleaverland ($30,000)
Balance as at December 31, 2020 $960,000
Answer:
e. portfolios P's expected return is equal to the expected return on stock B
